Press "Enter" to skip to content

Timmons Gold to acquire Mexico’s Ana Paula mining interests

In a deal worth $140 million CAD, Vancouver-based company, Timmins Gold, is set to acquire all issued and outstanding Newstrike stock.

Newstrike Capital is a Canadian mining company with 100 percent interest in certain exploration properties in Mexico. The mining districts of interest are located in the Guerrero gold belt and include the Ana Paula project.
Timmins Gold is a Canadian mining company that acquires, develops, explores and operates mining properties in Mexico. The acquisition of Newstrike will include the Mexican Ana Paula project.

Timmons Gold is also owner of the San Francisco gold project in Sonora state. They also have projects in San Onesimo (Zacatecas), El Picacho, Norma and La Pima in Sonora. They acquired Caballo Blanco gold project in December.

With the combination of the two new acquisitions, Timmons Gold production could rise to 326,000oz/y: 116,000oz/y from Ana Paula and 92,000oz/y from Caballo Blanco.

Timmons intends to improve Ana Paula economics through additional drilling, more investigative development, increased recoveries and lower capital costs by purchasing used equipment rather than new.

Timmons Gold CEO, Bruce Bragagnolo, says, “There is lots of room to improve on the PEA,” with optimization, permitting and equipment purchases expected to take 6-12 months.

Ana Paula’s initial capital costs are estimated at US$164mn and the project would generate an after tax IRR of 32.8% at US$1,300/oz gold and US$20/oz silver over an 8.2-year mine life, according to the PEA.

All-in sustaining costs will be among the lowest in the industry at US$567/oz gold.

Bragagnolo says that Mexico is a “fantastic” jurisdiction due to its political stability and long history of mining.
The deal won’t be complete until it’s been voted on by shareholders of both companies in April.

Comments are closed.